Wells Fargo is heading to federal court to undo a quiet title ruling that, it says, erased its lien on a California property without warning.
Filed July 24, 2025, in the Northern District of California, the complaint stems from a state court judgment that voided a $500,000 deed of trust and awarded borrower Arthur Mungaray $5 million in damages against GreenPoint Mortgage Funding. Wells Fargo, serving as trustee for a securitized mortgage trust, says it was never told about the case despite holding a recorded interest in the property.
The bank traces the dispute to a 2005 loan originated by GreenPoint and later placed into a mortgage-backed securities trust. In 2020, Mungaray filed a quiet title action naming only GreenPoint, claiming the mortgage had been fully paid. According to Wells Fargo’s filing, those claims were false, and the borrower knew the trust still held the lien from prior bankruptcy proceedings where both sides had agreed to protect the bank’s position.
